Technology In SalesIn Brick & Mortar Business

June 2014Presentation by Arup Ray, Glaxo atGreat Indian Marketing Weekend

www.gimw.in

India..An Emerging Market, is dominated by Unorganized Brick & Mortar Stores, unlike the Matured Ones….

… and is highly fragmented

Unorganized retail forms a large percent of total retail ...

Source: BAIN Analysis, 2012

Modern Trade Penetration Rate : 2012

SOURCE: Technopak Analysis; Euromonitor

Since early 2000’s, the CPG companies started to adopt Technology to build ‘Process’ Efficiencies in Sales

Access to Personal Computers

Advent of Internet

Telecom Uprising

Process Acceleration

Process Simplification

– Same process in lesser time

– Reducing Process Steps

With rapid evolution in technology in the last decade, the focus has shifted from ‘Process’ to ‘Performance’ …

Companies that inject big data and analytics into their operations outperform their peers by 5% in Top-line and 6% in Bottom-line

- McKinsey & MIT Research, 2012*

Source: “Applying advanced analytics in consumer companies”, McKinsey

Retailing Productivity Enhancement

Optimizing Investment of Resources

Leveraging Digital Merchandising

1 2 3

3 KEY DRIVERS

IN-STORE: Growing Assortment and Order Value

IN-MARKET : Field Force Productivity

Consumer and Trade Spends

Field Force Market Coverage

Visibility Effectiveness

IN-STORE: Growing Assortment and Order Value

Hand Held Device is becoming the intelligent interface with Field Sales Reps, guiding them with suggested product assortment at every outlet and tracking action

Suggested Order Quantity

Cross Sell Lines

Out-of-Stock Lines

Ageing Lines

RECOMMENDATIONSPREDICTIVE ANALYTICS

HISTORIC DATA

IN-STORE : Growing Assortment and Order Value

Focus Outlets highlighted Must sell SKUs

highlighted

Warning Message in case of non

billing

Sales rep needs to revisit focus SKU billing before

closing sales call

1 2 3 4

5

14

10

5

2-3% Incremen

talTopline

IN-MARKET: Field Force Productivity Enhancements

Leveraging ‘Time-Stamping’ Technology to provide Executive Dashboards on Field Force Daily performance … leading to

on-time Action

1-2% Incremen

talTopline

OUTPUT

Time in Market

Selling Time

Route Compliance

Some challenges faced by CPG companies in realizing these benefits…

1. The Helicopter View : “Every thing looks the same”… Senior Management might overlook specific application benefits

2. Getting Organizational Priorities Right: Prioritize areas for Technology Investments for accelerating business value

3. Talent Crunch: Team that is knowledgeable in all 3 areas -

–Business Process–IT–Modelling/Analytics

3 Key Success Factors which decide the fate of Technology Investments…

Right Data

Right Modeling Capability

Right Transformational

Program

Technology In SalesIn Brick & Mortar Business

Questions